It's not just Google

Over the last week, Google's transnational profit shielding has come into focus with HMRC agreeing that they can settle up and agreed a sweetheart deal. It's not popular, nor is it probably the most important. Amazon is probably a bigger problem for the real economy.

This story, in reverse date order moves from the announcement of the agreement, the political response on the whole negative, the EU & US responses, (looking at the US asymmetrical banking regulation and enforcement), a question time insurgency and the route to Bermuda and international tax haven regulation. It finishes with a piece by Evgney Morozov, wo argues that the defacto subsidy given to US software giants is killing jobs and wealth in the very jurisdictions that are behaving stupidly leniently.

In this article, Evgeny Morozov raises the question as to whether the growth of the mega platforms is classic dumping, economies of scale or a lack of will to regulate.

To understand why we see so few genuine alternatives to US technology giants, it's instructive to compare the fate of a company like Uber - valued at more than $62.5bn (£44bn) - and that of Kutsuplus, an innovative Finnish startup forced to shut down late last year.

To me given that the fulfilments are physical and local, it's not economies of scale. The economic policy consensus is that dumping and price discrimination are not in the public interest on anti-monopoly grounds. Morozov argues that the destruction of jobs and revenue outside the US is being subsidised by the tax shielding measures taken by the US multi-nationals. While there are jobs in advertising and the media, Amazon are massive worldwide players in the distribution industry; they have unfair competitive advantage over local firms, often SMEs that pay their taxes as was argued by Mark Constantine, one f the founders who successfully sued Amazon for unfair & anti-competitive business practices.

Not only do they transfer profit out of the UK, they seek to pay their tax in Bermuda, which is on the EU list of tax havens they are seeking to regulate. However, the Tory Government's subordination the public interest to that of the City continues.

Ordinary tax payers are rightly unhappy, and get on to Question Time to say so. SME's and consumers don't get personal advisers and negotiators, often have to wait a long time to talk to the tax help line and are often chased for trivial amounts.

Transport Secretary Patrick McLoughlin came in for heavy fire in angry exchanges the flagship BBC debate show Get politics news by email Question Time audience members nailed the hypocrisy of the government's Google tax deal as they seized their chance to attack a Tory minister.

The US Government lobby for lenient treatment for their corporate citizens, despite a number of States' authorities seemingly keener to prosecute foreign banks for malfeasance than paying attention to US based ones.

Even BNP Paribas cannot shrug off a $9bn (£5.1bn) fine. The bank is the fourth biggest by assets in the world and has been found guilty of violating US economic sanctions against Sudan, Iran and Cuba. It had repeatedly protested that it did not violate any European law, but US prosecutors say that is beside the point.

Stack has criticised EU crackdown on U.S. firms * EU likely to rule on Apple's Irish deal early in 2016 By Foo Yun Chee BRUSSELS, Jan 29 - A senior U.S. Treasury official will meet European Union antitrust officials investigating tax deals involving Apple and Amazon on Friday, the latest lobbying effort against a crackdown on U.S.

European Union authorities in Brussels have reiterated their readiness to investigate the British government's tax deal with Google, following the launch of a wider crackdown on so-called sweetheart arrangements. Pierre Moscovici, Europe's most senior tax policy official, said: "The commission will investigate the UK deal with Google if the need arises.

George Osborne has come under further pressure over Google's tax after it emerged the £130m deal is set to be investigated by Europe and MPs for being unfair. Labour and SNP MPs have called on the EU's Competition Commissioner to examine the deal, described by politicians on all sides as "derisory".